Aditya Birla Group enters Retail Jewellery Business by launching Rs.5000 crore Jewellery Brand ‘Indriya’
Aditya Birla Group announced their entry into the branded jewellery market with a new brand called ‘Indriya’ on July 26. They are investing Rs.5000 crore in this venture.
New Stores and Expansion Plans
The jewellery brand ‘Indriya’ will be managed by the company Novel Jewels. The group plans to open four stores on July 27 in Delhi, also in Jaipur and Indore. In the next six months, they aim to expand to 11 more cities.
Growth Goals
Kumar Mangalam Birla, the chairman of Aditya Birla Group, shared they aim to be among the top three jewellery brands in India within five years. He mentioned their goal to grow at a rate of 50% each year over the next five years.
Large Collection and Store Size
The ‘Indriya’ brand will offer 15000 jewellery pieces. These are made by 3,500 artisans from 13 cities. New designs will be introduced in stores every 45 days. The stores will be 40% larger than average national jewellery stores.
Leadership
Novel Jewel will be led by Dilip Gaur as Director and Sandeep Kohli will serve as CEO. Gaur explained that initial investment would be used for setting up the stores. They will also purchase an inventory and plan to create unique in-house designs. They aim to enhance customer experience.
Future Expansion
The company plans to first expand in major cities followed by smaller cities. Sandeep Kohli mentioned that a reduction in customs duty from 15% to 6% in the budget will help meet growing demand.
Market Potential
The jewellery retail market in India is valued at Rs.6.7 lakh crores. It is expected to grow to Rs.11-13 lakh crores by 2030. Currently, 60% of the market is unorganized. The largest national brand only has a 6-7% market share.
Industry Contribution
According to the India Brand Equity Foundation (IBEF), India’s gems and jewellery industry contributes 7% to the country’s GDP and 15.7% to total merchandise exports. From 2023 to 2024, until February, exports reached US$ 29.61 billion. However, there was a 15.31% decline from the previous year
Aditya Birla Group’s Recent Ventures
In the past two years, Aditya Birla Group has also entered the paints business with Birla Opus and also ventured into the e-commerce construction sector with Birla Pivot. Kumar Mangalam Birla mentioned that currently, 20% of their revenue comes from consumer businesses. This is expected to grow to 25% in the next five years.
Chairman’s Vision
Last June, Kumar Mangalam Birla stated that this new jewellery venture is a strategic move to tap into new growth opportunities. It is also intended to expand its presence in India’s consumer market. With rising incomes, consumers are looking for high-quality, Design-led jewellery and this venture aims to meet that demand.
